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This paper aims to investigate the role of service modularity in developing and deploying efficient services, while at the same time meeting diverse customer needs. The analysis distinguishes between different service types and sets forth key issues for service modularization, identifying supporting resources (both internal and customer) and associated modular strategies for the different types.

The study design used an exploratory case study approach, focusing on three Swedish manufacturing firms that are moving toward an increased service focus (service infusion). Data were collected through interviews and focus groups, and the collected data were analyzed independently, before being merged and synthesized in a cross-case analysis. Themes and patterns were extracted and linked to the theoretical framework following a systematic combining process.

This study contributes insights to the emerging field of service modularity by investigating process modularization and modular strategies. A framework is put forward outlining modular strategies for four different service types covering both a passive and an active role for a customer. From a theoretical point of view, the role of the customer is added to the discussion to advocate for the necessity of a co-creative perspective in service modularity.

This article contributes to the emerging research field of service modularity by providing empirical insights into how modularization and modular strategies can enable more efficient services. Depending on service type, different modular strategies are set forth. This study also highlights the need to recognize customer-specific activities, resources and competencies as pivotal parts of the modular service processes. Such insights are particularly relevant given the established view of service modules as functions of intra-firm activities.

This study aims to address the following research questions: Do the two types of service firms (individual or aggregator) have similar competitiveness on online search ads? How should the two types of service firms select optimal branded keywords to improve search performance? In addition, how do consumers’ search queries influence the service search performance of the two types of service firms?

In this study, the authors conduct an empirical analysis by building a two-stage choice modeling on the process of search engine ranking and consumer click-through decisions. The authors estimate the parameter coefficients and test the hypotheses using maximum likelihood estimation in the logistic regression model.

The empirical findings suggest that consumer response rates are highly dependent upon three aspects (service types, branded keyword strategy and consumer search query). First, the authors found that service aggregators receive greater consumer responses than individual service providers. Second, depending upon the various branded keyword strategies (e.g. generic vs branded, “within-type” vs “cross-type”) implemented by service aggregators or individual firms, the expected consumer responses could be quite different. Finally, customer’s search query, being either generic or branded, also has direct effect and interactive effect with service type on how consumers would response to the sponsored ads in the service search process.

The limitation of the research is twofold. First, conversion rate is not considered in the model estimation due to the nature of the data set. Second, the discussion about the keywords selection strategies is focusing on the hospitality industry. Future research shall further validate the generalizability into other industries.

First, given this competitive advantage, service aggregators should take an aggressive approach to adopting paid search strategy in acquiring new users and enhance its brand salience in the service ecosystem. Second, when considering other competitor’s brand names to include, if a firm is a service provider (e.g. hotel), a strategy that can help it receive higher consumer response would be to use “within-type” rather than “cross-type” branded keyword strategy. If a firm is a service aggregator, a better branded keyword strategy would be to use “across-type” instead of “within-type” approach. In addition, given that consumer’s brand awareness can influence the effectiveness of branded keyword strategy, online service search should target consumers in earlier stages of a decision journey.

The authors believe their theoretical framework can provide actionable solutions to service firms to ease customer’s search process, increase customer’s stickiness using search engines and add value to the customer relationships with all services entities within the digital ecosystem.

This study is the first to expand online search marketing into granule examinations (main and interactive effects of three key factors) in the service search domain. First, the authors differentiate service firms into two categories – online travel aggregators and individual hotels in the model. Second, the authors introduce two sets of new classifications of branded keywords for online service search research (i.e. own versus other brand and “cross-type” versus “within-type” branded keywords). Third, this study integrates service consumers’ search word specificity into the conceptual framework which is often missing in previous online search research.

Mixed products, while presenting new business opportunities, raise considerable concerns among managers and researchers. However, whether mixed products (functionally vs culturally) trigger positive or negative consumer reactions is controversial. Hereby, the present research seeks to resolve the conflicting effects by examining the moderating role of service provider type (humanoid service robot vs human employee) in the impact of mixed products on consumer reactions.

Two studies were conducted to explore the effect of mixed products on consumer reactions. Specifically, study 1 was developed to examine the interplay of mixed products and service provider type in shaping consumers' product attitudes and purchase intentions under an offline shopping scenario; study 2 further provided evidence for the mediating roles of perceived usefulness and perceived enjoyment in the above processes under an online-shopping context.

The convergent findings of two studies conclude that, when served by a humanoid service robot (vs human employee), consumers exhibit more positive attitudes and higher purchase intentions toward functionally (vs culturally) mixed products. Furthermore, such effect is driven by the perceived usefulness (vs perceived enjoyment) when served by humanoid robot (vs human employee).

First, this is one of the first studies to conceptualize mixed products as the two-dimensional construct (i.e. functionally mixed and culturally mixed), and the findings sheds light on the mixed products literature. Second, this paper introduces service provider type as the boundary condition for the impact of mixed products on consumers' product attitudes and purchase intentions, which expands the match-up hypothesis and schema theory in service marketing. Third, the current research explores the mediating roles of perceived usefulness and perceived enjoyment in the above effects, which could make significant contribution to the motivation theory.

To examine the strategic posture of third‐party logistics (3PLs) providers in mainland China.

A sample survey, obtained by mail, of 3PLs firms in mainland China. Key informant data are used to operationalize Porter's competitive strategy and provides a framework to identify logistics strategies pursued by 3PLs providers. Various aspects of 3PLs providers are compared by different strategy types.

Identified four logistics strategies pursued by 3PLs providers in mainland China. Differentiation strategy outperforms cost leadership strategy. Companies pursuing cost leadership are shifting towards differentiation strategy to cope with the intense competition faced in mainland China's immense logistics markets.

Bias may exist due to the mail survey. In‐depth studies on strategy formulation of 3PLs providers could be carried out to examine what factors influence the strategy formulation and explore the strategy evolution path.

This study is a very insightful source of information about 3PLs in mainland China for logistics managers, investors and policy‐makers. It provides guidance for 3PLs executives to formulate logistics strategy, adjust business objectives and prioritize operations, and for logistics users to select appropriate logistics providers. There are also suggestions for government to improve the business environment for the logistics industry. The study provides a basis for research on logistics management in mainland China.

This study is a pioneer and comprehensive study of mainland China's 3PLs providers. To the best of our knowledge, this is the first study to examine 3PLs providers in mainland China.

The purpose of this paper is to gain some insight into the effectiveness of different types of tangible compensation strategies for two different types of services: utilitarian and hedonic.

The hypotheses are investigated using a 2×2 between‐subject experimental design and two factors: service type (utilitarian vs hedonic) and compensation type (utilitarian – a price reduction vs hedonic – a free gift).

The results show that customers prefer to receive a form of compensation that matches the type of service involved. For example, customers who receive a utilitarian compensation (e.g. a price reduction) after experiencing a failure in utilitarian service (e.g. at a bank) report higher levels of satisfaction and repurchase intention than they would after experiencing a failure in hedonic services (e.g. at a restaurant), but that the reverse is true for a hedonic‐type compensation (e.g. a free gift).

The offering of either a price reduction or a free gift cuts into company profits. Organizations should, therefore, tailor their service recovery efforts, focusing on those resources in the bundle that will have the greatest positive impact and create the most favorable customer response.

The primary contribution of this paper to the service marketing literature is that it provides empirical results, which shed light on the interplay between the type of compensation and the type of service on the customer's post‐recovery judgment of that service.

Swanson's tri‐core model and typology of IS innovation is used to analyze Web services as IS innovation. Reconciling theoretical and practical perspectives, we develop a three‐layer nested‐stage model as a road map for studying Web services innovation. Most current Web services practice is at the first stage as IS technological process innovation (Type 1b). High compatibility, high divisibility, and high customizability are the primary characteristics of Web service (Type 1b), which originate from the innovation invention layer. Perceived communicability, perceived relative advantage, perceived complexity, and financial cost are the secondary characteristics of Web services (Type 1b), which are located at the innovation adoption layer. We propose a readiness model to illustrate the key controllable factors that influence the adoption decision of Web services (Type 1b): innovation awareness readiness, innovation‐needs fit readiness, technological skills readiness, and financial resources readiness.

The extant new service development (NSD) literature tends to assume that the key practices for NSD identified in one context apply for all services, and has failed to sufficiently consider differences in NSD between service types. The purpose of this paper is to explore the nature of NSD across different service types.

An extensive, cross-sectoral survey was conducted in seven countries. Data from 1,333 NSD projects were analyzed to empirically derive a service typology and examine if and how different types of services vary in terms of NSD resources, practices, methods, and results.

Based on six service characteristics, the study identifies four service types: routine-intensive, technology-intensive, contact-intensive, and knowledge-intensive services. The study also identifies specific NSD resources, practices, methods, and results that are prevalent across the service typology. The evidence indicates that the use of advanced practices and methods differs dramatically between service types.

The paper enables practitioners to expand their current understanding on NSD by providing insights into the variability of NSD across service types. The results suggest that either service-type-specific models or a configurable model for NSD should be developed.

This study provides one of the first empirically derived service typologies for NSD. The study demonstrates that NSD resources, practices, methods, and results differ across service types, thereby challenging the “one size fits all” assumption evident in current NSD research.

To investigate the relationship between the choice of integrated or functional logistics providers by Brazilian shippers and: the type of their manufacturing process structure, and the level of sophistication of their logistics function, as well as the impact on that choice of possible interactions between these two characteristics of the shippers.

Data were collected in a comprehensive survey on the use of 3PL service providers in Brazil using a sample of 93 large Brazilian shippers; The analysis tests three research questions on the individual and combined relationships of logistics sophistication, measured on a logistics sophistication index (LSI), and process type (according to Goldratt's V‐A‐T classification for materials flow analysis) with the choice of type of 3PL provider; the methods of analysis were cluster and logistics regression analysis.

The paper finds: support for an association of sophisticated logistics functions and a preference for integrated 3PLs; support for an association between the A‐type production process structure and preference for integrated 3PLs; and of V and T types for functional 3PLs. However, it also finds that shippers with type T process structure and more sophisticated logistics tend to favor integrated 3PLs.

One limitation is that logistics performance is not considered; future studies may further refine the proposed framework for segmentation.

The paper advocates the use of models by providers to segment their customers, and better understanding by shippers of prevailing trends in logistics outsourcing according to their process structure and characteristics of their logistics function.

The paper unveils significant relationships between shipper sophistication of logistics function, manufacturing process structures, and the choice of type of 3PL. It also proposes a new framework for segmenting the 3PL service provider market in terms of sophistication of the logistics function and the logistics task implied by the type of operation.

This research aims to examine the use of emotional and rational advertising appeal regarding service options that differ in terms of their experience and credence properties and exploring the moderating role of individual difference in affect intensity on the consumers’ varying reliance on rational vs emotional appeals.

Study 1 is a 2 (service type: restaurant vs dentist) × 2 (advertising appeal: emotional vs rational) between-subjects design. In total, 137 undergraduate students took part in this study. Study 2 is a 2 (service type: airline vs hospital) × 2 (advertising appeal: emotional vs rational) between-subjects design. In total, 84 MBA students were randomly assigned to each of the experimental conditions. Study 3 is a 2 (service type: airline vs hospital) × 2 (advertising appeal: rational vs emotional appeal) × 2 (affect intensity: high vs low) between-subjects design. The sample size was 170 undergraduates.

The results of the first two studies provided support that an emotional advertising appeal led to a higher purchase intention in the experience service condition, while a rational message generated higher purchase intention in the credence service condition. Study 3 showed the moderating role of individual difference in affect intensity. High affect intensity individuals reported higher levels of brand favorability than did their low affect intensity counterparts when exposed to ads using emotional appeal. Conversely, subjects showed no significant differences in the intensity of their emotional responses when exposed to rational appeals.

Our results suggest a strong need to tailor ads to fit different service categories. An emotional appeal would be more effective for experience services, and a rational appeal would be more effective for credence services. Besides, individual traits may also need to be considered when matching the appeal to the service type.

This study makes an important contribution to the limited existing research by providing a more comprehensive understanding of the relationship between advertising appeal and the type of service across different sub-categories, themes, individual trait and effectiveness measures. Specifically, the present research seeks to illuminate the relative effectiveness of emotional vs rational appeals in services advertising. In addition, the current research reveals new knowledge about the role that affect intensity plays in determining consumer responses to advertising.

The purpose of this conceptual paper is to provide a typology for classification of the digital goods business (DGB), analyzing its characteristics with selected cases, to suggest an evolution strategy appropriate for today's digital business economy, and to address the research implications.

Based on a focus group interview, the study identified and classified the DGB models into four types in terms of sales channels and service methods, and further proposed five evolution strategies for the DGM.

The paper proposes five evolution strategies for the DGB: from streaming direct to streaming intermediary; from download direct to download intermediary; from download intermediary to streaming intermediary; from download direct to streaming direct; and from download direct to streaming intermediary. These evaluation strategies will be suitably applicable to the type of digital goods for which a business strives.

As the study is exploratory in nature, further research will be required to empirically confirm the findings of the underlying study regarding various DGBs, such as software, games, and movies. In addition, as the proposed typology reflects only the current state of the DGB industry, a further elaboration of the typology may also prove necessary in the future as technologies and the DGB industry evolve.

Providing a useful theoretical foundation for future DGB studies and valuable insight into practical applications in the ever‐growing DGB field, the paper delivers transitional strategic insights based on digital goods taxonomy. This strategic implication can be applicable to analyzing and explaining current DGB cases.